How to buy Automatic Data Processing (ADP) stocks

Automatic Data Processing is a software - application business based in the US. Automatic Data Processing shares (ADP) are listed on the NASDAQ and all prices are listed in US Dollars.

Its last market close was $294.02 – a decrease of 0.92% over the previous week. Automatic Data Processing employs 64,000 staff and has a trailing 12-month revenue of around $19.5 billion.

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Automatic Data Processing stock price (NASDAQ: ADP)

Use our graph to track the performance of ADP stocks over time.

Automatic Data Processing stocks at a glance

• Key figures

Information last updated 2024-12-18.

Latest market close	$294.02
52-week range	$223.59 - $308.03
50-day moving average more info button	$297.09
200-day moving average more info button	$264.42
Wall St. target price	$296.88
PE ratio more info button	30.7898
Dividend yield more info button	$5.6 (2.08%)
Earnings per share (TTM) more info button	$9.37

Is it a good time to buy Automatic Data Processing stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

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Automatic Data Processing price performance over time

Historical closes compared with the close of $291.33 from 2024-12-19

1 week (2024-12-13)	-1.83%
1 month (2024-11-21)	-4.35%
3 months (2024-09-20)	5.40%
6 months (2024-06-21)	17.49%

1 year (2023-12-21)	27.22%
2 years (2022-12-21)	23.26%
3 years (2021-12-21)	33.77%
5 years (2019-12-20)	89.30%

Is Automatic Data Processing stock undervalued or overvalued?

Valuing Automatic Data Processing stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Automatic Data Processing's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Automatic Data Processing's P/E ratio

Automatic Data Processing's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 31x. In other words, Automatic Data Processing shares trade at around 31x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the stock or simply that they're over-valued.

Automatic Data Processing's PEG ratio

Automatic Data Processing's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.6885. A low ratio can be interpreted as meaning the stocks offer better value, while a higher ratio can be interpreted as meaning the stocks offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Automatic Data Processing's future profitability. By accounting for growth, it could also help you if you're comparing the stock prices of multiple high-growth companies.

Automatic Data Processing's EBITDA

Automatic Data Processing's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $5.7 billion.

The EBITDA is a measure of a Automatic Data Processing's overall financial performance and is widely used to measure a its profitability.

Automatic Data Processing financials

Revenue TTM	$19.5 billion
Operating margin TTM	26.49%
Gross profit TTM	$8.5 billion
Return on assets TTM	6.54%
Return on equity TTM	87.26%
Profit margin	19.72%
Book value	$13.12
Market Capitalization more info button	$117.6 billion

TTM: trailing 12 months

Automatic Data Processing stock dividends

Dividend payout ratio: 60.87% of net profits

Recently Automatic Data Processing has paid out, on average, around 100% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Automatic Data Processing shareholders could enjoy a 0% return on their shares, in the form of dividend payments. In Automatic Data Processing's case, that would currently equate to about $5.6 per share.

Automatic Data Processing's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Automatic Data Processing's most recent dividend payout was on 31 December 2024. The latest dividend was paid out to all shareholders who bought their stocks by 12 December 2024 (the "ex-dividend date").

Have Automatic Data Processing's stocks ever split?

Automatic Data Processing's stocks were split on a 1139:1000 basis on 30 September 2014 . So if you had owned 1000 shares the day before before the split, the next day you'd have owned 1139 shares. This wouldn't directly have changed the overall worth of your Automatic Data Processing stocks – just the quantity. However, indirectly, the new 12.2% lower stock price could have impacted the market appetite for Automatic Data Processing stocks, which in turn could have impacted Automatic Data Processing's stock price.

Automatic Data Processing stock price volatility

Over the last 12 months, Automatic Data Processing's stocks have ranged in value from as little as $223.5911 up to $308.0339. A popular way to gauge a stock's volatility is its "beta."

Beta is a measure of a stocks volatility in relation to the market. The market (NASDAQ average) beta is 1, while Automatic Data Processing's is 0.795. This would suggest that Automatic Data Processing's stocks are less volatile than average (for this exchange).

Automatic Data Processing overview

Automatic Data Processing, Inc. engages in the provision of cloud-based human capital management (HCM) solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based platforms, and human resources (HR) outsourcing solutions. This segment's offerings include RUN Powered by ADP, a software platform for small business payroll, HR management, and tax compliance administration; ADP Workforce Now, a HCM solution used across mid-sized and large businesses to manage employees; and ADP Vantage HCM, a solution for HR management, benefits administration, payroll services, time and attendance management, and talent management. The PEO Services segment provides HR and employment administration outsourcing solutions under ADP TotalSource name to businesses through a co-employment model. The segment also provides employee benefits, protection and compliance, talent engagement, expertise, comprehensive outsourcing, and recruitment process outsourcing services.

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Frequently asked questions

What percentage of Automatic Data Processing is owned by insiders or institutions?
Currently 0.12% of Automatic Data Processing stocks are held by insiders and 84.48% by institutions. How many people work for Automatic Data Processing?
Latest data suggests 64,000 work at Automatic Data Processing. When does the fiscal year end for Automatic Data Processing?
Automatic Data Processing's fiscal year ends in June. Where is Automatic Data Processing based?
Automatic Data Processing's address is: One ADP Boulevard, Roseland, NJ, United States, 07068 What is Automatic Data Processing's ISIN number?
Automatic Data Processing's international securities identification number is: US0530151036 What is Automatic Data Processing's CUSIP number?
Automatic Data Processing's Committee on Uniform Securities Identification Procedures number is: 053015103

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